Baht Props Up Performance Table Ahead Of BoT

The greenback softened slightly from Tuesday's closing highs, but broad risk off sentiment kept Asia EM currencies subdued.

• CNH: Offshore yuan is weaker but has picked up from session lows. Evergrande remains in focus, the firm has a $45.2mn coupon payment due on a US$ denominated offshore bond on Wednesday - the company missed a similar payment last week
• SGD: Singapore dollar is weaker but off worst levels, the drop comes even as yields in Singapore rise to the highest levels since June.
• KRW: Won is flat having recovered opening losses. On the coronavirus front there were 2,885 new cases in the past 24 hours. A minister said yesterday that the government expects to transition back to normal life between October and November.
• TWD: Taiwan dollar has declined, on track to drop for a second . The Taiex has seen heavy selling, chip stocks have taken a hit after Micron gave a weaker than expected sales forecast.
• MYR: Ringgit is weaker, DAP leader said that the institutional reforms agreed upon by PM Ismail Sabri's gov't and the opposition Pakatan Harapan alliance will be brought to parliament by March 2022.
• IDR: Rupiah fell, dropping to lowest level in a month. Bulls look for a resumption of gains and a break above the 50-DMA at IDR14,345, while bears eye Sep 22 & 24 lows of IDR14,233 for initial support.
• PHP: Peso is flat, markets digest comments from BSP Director Abenoja that the spike in consumer-price inflation is driven by supply-side factors and can be best tackled by non-monetary measures rather than raising interest rates.
• THB: Baht has declined, the Bank of Thailand will announce their monetary policy decision today. 3 out of 22 economists in the Bloomberg survey look for a 25bp rate cut.